CHAPTER FOUR

STAFFING THE ORGANIZATION

Definition:
The managerial function of staffing is defined as filling and keeping filled positions in the
organizational structure through identifying work-force requirement, inventorying the people
available recruiting, selecting, placing, promoting, appraising, compensating the training and/or
developing both candidates and current job holders to accomplish their tasks effectively and
efficiently.
5.1. Personnel Planning and Recruitment
1) Human Resource Planning /Man power planning/:
It is the process of determining the need of the right man at the right time to the right job. It is the
process of determining the need of the provision of adequate human resources to the job in the
organization. It is designed to ensure that the personnel need of the organization will be constantly
and appropriately met. It is accomplished through analysis of
(i) Internal factors such as current and expected skill needs, vacancies, and departmental
expansions and reductions; and
(ii) External environmental factors such as the labor market, the government regulation, the
labor union; etc
As a result of this analysis, plans are developed for executing the other steps in the staffing
process. This helps an organization to determine the need of employees for short term or for long
term.
There are four basic steps in human resource planning:
a. Planning for future needs. How many people with what abilities will the organization need
to remain in operation for the foreseeable future?
b. Planning for future balance. How many people presently employed can be expected to stay
with the organization? The difference between this number and the number the organization will
need leads to the next step.
c. Planning for recruiting and selecting or for lay off. How can the organization attain the
number of people it will need?
d. Planning for development. How should the training and movement of individuals within the
organization be managed so that the organization will be assured of a continuing supply of
experienced and capable personnel?
The organizational internal environment (such as its strategic plan) as well as its external
environmental will broadly define for managers the limits with in which their human resource
plan must operate. Once there broad limits have been established, managers can begin to
compare their future personnel needs against the existing personnel situation inorder to
determine what recruitment, training and development procedures they will need to follow. The
fact that the internal and external environments of an organization change means that managers
must monitor these environments to keep their human resource plan up to date.
The central elements in human resource planning are forecasting and the human resource
audit. Forecasting attempts to assess the future personnel needs of the organization. The human
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resource audit assesses the organizations current human resources. These two elements give
managers the information they need to plan the other steps in the staffing process, such as
recruiting and training.
2) RECRUITMENT:
It is the process of reaching out and attempting to attract potential candidates who are capable of
and interested in filling available positions of an organization. It is concerned with developing a
pool of job candidates, in line with the human resource plan. It is an intermediary activity
between manpower planning on the one hand, and selection of employees on the other hand.
An important part of the recruiting process is developing a written statement of the content and
the location (on the organization chart) of each job. This statement is called the job description or
position description. This statement lists the title, duties and responsibilities for that position.
Once this position /job description has been established/determined and accompanying hiring or
job specification, which defines the background, experience, and personal characteristics an
individual must have in order to perform effectively in the position, is developed.
 Sources of Recruitment:
Sources of supply are the places, agencies, and institutions to which recruiters go to seek
potential candidates that will fill the vacant positions or the job needed. These sources of
supply are generally categorized in to two.
(i) Internal Recruitment/ recruitment from within: this involves recruitment within the
organization; it could be through promotion, lateral transfer, demotion or any therefrom.
Advantage:
 It is usually less expensive to recruit or promote from within than to hire from outside the
organization.
 It may faster loyalty and inspire greater effort among organization members.
 Individuals will already be acclaimed to the organization and may therefore need less initial
training and orientation.
Disadvantage:
 It limits the pool of talent available to the organization.
(ii) External /outside/ recruitment: It involves recruitment outside the organization. The major
alternative sources are:
a. Direct application
b. Employee referrals /word of mouth/
c. Advertising
d. Educational institutions
e. Private/public employment agency
f. Other sources such as professional associations
3) Selection:
 It can be defined as the process of determining from among applicants WHICH ONE
FILLS BEST for the job description and specification which is offered to the job within the
organization. It involves evaluating and choosing among job candidates. The role of
recruiting is to locate job candidates; the role of selection is the evaluate each candidate and
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 the pick the best one for the position available. Application forms, resumes, interviews,
employment & skill tests, and reference checks are the most commonly used aids in the
selection process.
 Selection is the mutual process whereby the organization decides whether or not to make a
job offer and the candidate decides on the acceptability of the offer.
4) Orientation and socialization /induction/
It is designed to provide a new employee with the information he/she needs in order to
function comfortably and effectively in the organization. Typically, socialization will convey
three types of information.
(i) General information about the daily work routine;
(ii) a review of the organizations history, purpose, operations, and products or services, and
how the employee's job contributes to the organizations needs, and
(iii) a detailed presentation, perhaps in a brochure, of organizations policies, work rules, and
employee benefits.
5.2. Selecting Employees
Selection is the process of choosing the most suitable persons out of all the applicants. In this
process relevant information about applicants is collected through a series of steps so as to
evaluate their suitability for the job to be filled.
Selection is a process of matching the qualification and experience profile of applicants with the
job requirements. The better ‘fit’ between the two, the higher is the possibility of selection.
Effective selection process requires:
 Clearly spelled out job description and job specification
 Sufficiently large pool of prospective applicants.
 Series of steps through which applicants pass
Right selection improves:
 Human capital of the organization
 employer-employee relations
 productivity and commitment of employees
Poor selection leads to:
– Increased employee turnover,
– Absenteeism,
– Job related Accidents
– Job dissatisfaction
– High costs of training and Productivity losses.
THE SELECTION PROCESS
Steps in a selection process differ from organization to organization-some use only interview,
others use written tests plus interview, still others follow all the necessary steps. However, a
systematic selection process consists of the following steps:
The selection process of a progressive and professional organization typically involves the
following:

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Flow chart of Selection Process

1 Preliminary Interview
First of all initial screening has to be done to weed out totally undesirable / unqualified
candidates. It is essentially a sorting process which can be done even through a telephonic
interview, wherein the essential information about the nature of the job and organization can be
shared with prospective employees. Necessary information is also elicited from the candidates
about their education, skills, experience, communication skills, salary expectation, etc. If the
candidate is found suitable, he is selected for further screening. Preliminary interview saves time
and efforts of the company and the candidate. It avoid the unnecessary waiting for the rejected
candidate and waste of money for further processing of an unsuitable candidate It is the first
contact of an individual with the organization. Therefore, the interviewers should be courteous,
receptive and informal, particularly when the candidate is being turned down.
The recruitment process generates sufficiently large number of application forms filled by
prospective candidates. Such forms consist of information about:
 Personal background information: Name, gender, age, marital status, nationality etc.
 Qualifications: Educational, professional and other qualifications and specialized skills.
 Work Experience: Experience in previous jobs; duties, responsibilities, etc.
 Salary: Salary drawn in present employment and expected salary.
 References: Names and addresses of persons who can be contacted for references.

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  Such information in the application forms are examined to check whether there is a match
between the applicants' qualification and the vacant position.
Individuals who do not satisfy the minimum qualification will not be considered and best
qualified will be invited to continue on the second process.
2. Selection Test (both cognitive and Psychometric Test)
Standardized written and practical tests are administered to the candidates passing the
preliminary selection process.
The major types of tests can be:
 Aptitude (paper and pencil) test : measure the general intelligence, mental ability,
skill and learning capacity of candidate's. E.g. mathematics test for book keepers,
language test for receptionist
 Performance Tests: involves actually doing a sample of the job in a controlled situation.
E.g. typing tests
 Performance Simulations: require applicants to perform tasks closely resemble
(representative of) the actual job but does not involve direct performance of the job or
part of the job
 Achievement Tests: measure theoretical and/or practical knowledge and skills of the
candidates, which candidates claim to know.
3. Selection Interview
It is face-to-face observation and evaluation of the candidate's suitability for the job. It
assesses the candidates in the following areas:
 Ability to do the job
 Motivation and eagerness to do the job
 Ability to work under pressure (stress)
 Ability to 'fit-in' with the organization
 Personality and interpersonal skills
 Adaptability to the job situation
Types of interview:
1. Structured Interview: all candidates are asked the same type of standard questions
prepared in advance.
Structured interview can be:
o Situational questions: involve creating a hypothetical job situation to determine what
the applicant would do in that situation.
o Job knowledge questions: involve investigate the applicant's job-related knowledge
(basic educational)
o Worker requirement questions: seek to determine the applicant's willingness to
confirm to the job requirements.
e.g. the applicant's willingness to work in the rural part of the country
2. Unstructured Interview: In this type of interview, questions are not planned in advance;
the interviewer can prepare it while the interview is in progress depending on the
situation. Questions vary from candidates to candidates

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 3. Mixed (semi structured) Interview: in this method the interviewers use combination of
structured and unsaturated set of questions.
The structured questions provide information that allows comparisons between candidates;
the unstructured questions permit greater insights into the unique differences between
applicants
4. Stress Interview: stress interview is a deliberate attempts to create tension and pressure
in an applicant to see how well the candidate responds to these tensions
4. Salary Negotiations
The situation in which a salary is negotiated could vary depending on whether the individual is a
candidate with a certain degree of work experience, applying for a position in a company, or is a
candidate with no prior work experience, applying for an entry level position in an organization.
Another situation could be an employee looking for career advancement in his current
organization. The details of each of these situations might be different.
While negotiating compensation, the HR Managers keep in mind the following aspects:
1. The maximum limit within the salary band for the position the candidate is considered
2. The perceived value the candidate is likely to bring into the company - whether it is worth
meeting or going close to the expected salary of the candidate?
3. .What is the salary range of employees already within the organization who have comparable
qualification and experience?
4. What is the expectation of other candidates, who could be considered as alternatives?
5. How much does competition pay for such a candidate?
6. Does the candidate possess some rare skills and experience? Is there a big gap between
demand and supply of the talent profile under consideration?
5. Physical / Medical Examination
The applicants who have crossed the above stages are sent for a physical examination either to
the company’s physician or to a medical officer approved for the purpose. Such examination
serves the following purposes:
1. It determines whether the candidate is physically fit to perform the job. Those who are
physically unfit are rejected.
2. It reveals existing disabilities and provided a record of the employee’s health at the time
of selection. This record will help in setting company’s liability under the workmen
Compensation Act for the claim for an injury.
3. It prevents the employment of people suffering from contagious diseases.
4. It identifies candidates who are otherwise suitable but require specific jobs due to
physical handicaps and allergies.
6. Reference Check
Prior to making a job offer, a prospective employer needs to check candidate references.
Through reference check employer can check job performance, work ethic, and attendance at
work, attitude and other criteria that are important to a company when making a decision on
whom to offer the job to.
7. Offer Letter

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The job offer letter is provided to the candidate when selected for the position. Most frequently,
the candidate and the organization verbally negotiate the conditions of hire and the job offer
letter confirms the verbal agreements.
SELECTION FROM GLOBAL SOURCES
Selection criteria for international assignments:
1. Interest in working overseas
2. Ability to relate to different cultures and environments
3. Supportiveness of the candidate’s family
Female executives have done well abroad in Asia and Latin America, despite past reluctance to
assign them to these countries
5.3. Orientation and Training
Organizing human resources is a dynamic activity. Job demands change, which requires altering
and updating an employee's skills. Therefore, managers are involved in deciding when their
subordinates may be in need of training. Thus, training is a process designed to maintain or
improve current job performance; development is a process designed to develop skills necessary
for future work activities.
Reasons for Training:
a. to orient new employees: while schools and training institutions provide general education in
many skills new employees require additional training to acquaint them with specific
situation of the organization and the job.
b. To improve performance: training will help to improve performance by increasing
productivity, improving quality, reducing turnover, reducing labor cost, etc.
c. To maintain current performance: sometimes individuals holding a position or doing a job
may get obsolete so train these employees will help to maintain current performance.
Training Methods:
There are two different types of training techniques.
(i) On-the-job training
(ii) Off-the-job training
(i) On-the-job training: involves learning methods and techniques by actually doing a job
(performing the work) and increasing the levels of skills of the employee. The employee
usually learns under the supervision of the in mediate boss or co-worker who has greater
knowledge and skills about the job. It is widely used, because it is economic and convenient;
and no special facilities, equipment and training places are required and the employee
produces and contributes to the organizational objective and at the same time he learns job
rotation and job instruction methods are few of the techniques used in on the job training. It
is convenient for small number of trainees. Some of its disadvantages are: - it creates
disinterest of employees, employees have dual responsibility, & it is not convenient for large
number of employees.
(ii) Off-the-job training: This technique involves participation of employees in a series of
events removed from the actual performance of the organization and the work situation.
Advantages:

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 It creates interest of employees: because employees are removed from their routine activities
and are moved to new environment.
 It is convenient for large number of employees. (trainees)
Disadvantages:
 It is expensive- there are costs for trainers, facilities, and also the employee does not
contribute during the training.
 There is a problem of transfer of knowledge from the training situation to the actual situation of
the job.
Vestibule training, classroom instruction / lectures, films and simulation exercises are the
more popular techniques of off-the-job training.
5.4. Other topics in Human Resource Management
Maintenance and utilization
1. Performance Appraisal:
It is the process used to determine whether an employee is performing according to what is
designed or intended. It helps to formally evaluate the adequacy of recruitment and selection and
suggests whether or not the employee will need to be replaced, or trained.
The many purposes of performance appraisal can be summarized in the following key points:
 Performance appraisal should lead directly to increased productivity.
 It helps in salary administration
 It plays a vital role in determining an employee for promotion.
 Appraisals are used as a vehicle for bringing about employee development because the
results of the performance evaluation can serve as a basis for coaching and counseling.
 Performance appraisal results are used extensively in human resource research.
2. Transfer:
It is a shift of a person from one job, organization level, or location to another. The transfer
may be a promotion, demotion, or a shift to another same level position /lateral transfer./
Promotion: refers to a shift for advancement of an employee to a higher job with more
employment and prestige, higher status, and higher responsibility. The possibility of
advancement often serves as a major incentive for superior performance, and promotions are
the most significant way to recognize such superior performance. Therefore, it is externally
important that promotions be fair i.e., based on merit and free from favoritism.
Demotion: refers to a shift of an employee to a lower position in the hierarchy due to
inefficiency, and incompetence to fulfill assigned tasks.
Lateral transfer: refers to the movement of an employee from one job or position to another
without involving any significant change in the employment and status
5.4 Separation
This refers to those factors that bring the termination or ceasing of the relationship between
the organization and the employee. Separation may result from such factors as resignation,
layoff, discharges, and retirement.